Bengaluru Porter, an intracity logistics company, plans to launch in ten more cities in FY23 with an operational expenditure of one million dollars per city.
“In order to get to a new city, in-unit economics terms, it takes about $1 million of operational expenditure spread over three years per city to become self-sufficient and profitable,” said Pranav Goel, co-founder and CEO told BusinessLine. It plans to expand to 35 cities in the next three years, and is currently operating in 16 cities.
Apart from city expansion, it also plans to scale up its four businesses. Goel explained, “The company is largely an intra-city player in the packers and movers business, but with the addition of intercity operations micro-shifting options to our prevailing services, we expect more momentum in this category.”
Light commercial vehicles (LCV) account for 70 per cent of its overall revenue, two-wheelers are about 20–22 per cent, and the movers and packers and large-scale enterprises are split between the remaining 10 per cent. It generated a net revenue turnover of ₹862 crore in FY22. The company claims to have grown two times year-on- year since its inception.
Application Programming Interface
It is also developing its API to reach a larger customer base. According to Goel, “the intent behind creating API is to create logistics as a service, a kind of platform where any large company can plug and play into our system and network to leverage the spot-on-demand platform that we have created.”
The main idea is to be a multi-category, multi-city, multi-use case company, catering to all kinds of requirements and become a much more integrated solution for users in a city, and all these steps that we are taking right now are in that direction, he added.
Porter claims a customer retention rate of 65 per cent, which it calculates every six months. It operates with four lakh partner drivers and has a customer base of 80 lakh.